Every new factoring broker eventually asks the same question:
“Can I really make six figures in this business?”
The answer—based on industry mechanics and the power of residual commissions—is a clear yes. In fact, for brokers who stay consistent, a six-figure income becomes not just possible, but probable.
Here’s how the commission math works.
Understanding How Broker Commissions Work
Factoring brokers are typically paid 10% of the fees a factor earns on the clients you refer. This is your cut for every invoice your clients factor—month after month, year after year.
A simple example:
-
Client invoice: $10,000
-
Factor fee (3%): $300
-
Your 10% commission: $30
To hit a six-figure income—about $8,300 per month—your client portfolio must generate enough factoring fees for your 10% slice to equal that amount.
That means roughly:
$2,670,000 in monthly invoice volume → $8,300 in monthly commissions
But this is where new brokers misunderstand the industry—because in real life, invoices don’t always pay in 30 days.
How Slow-Paying Customers Boost Your Commissions
If your client’s customer pays in:
-
45 days
-
60 days
-
Or even longer
Two things happen:
-
Factoring fees increase naturally
-
Your commissions increase right along with them
You get paid your percentage on all fees charged—no matter how long the invoice stays open.
Slow pays mean bigger checks without adding more clients.
Higher Commissions Accelerate Growth Even Faster
Many factors reward productive brokers by increasing their commission rate to 15% or more.
At 15%, your commission on a $10,000 invoice jumps from:
-
$30 → $45
At that rate, you only need:
$1,845,000 in monthly invoices
instead of $2,670,000 to reach your six-figure income.
The longer you stay in the business and the more trusted you become, the higher your commission tier can climb—and the faster you reach your goals.
Why a Six-Figure Income Becomes Likely Over Time
Factoring is a residual commission business.
Every client you source continues producing commissions:
-
Every month
-
Every invoice
-
Every year they remain active
Many stay onboard for 3, 5, even 7+ years.
This means:
-
You don’t start at zero each month
-
Your income stacks and grows like a portfolio
-
Even a few new clients a year can dramatically increase long-term earnings
For brokers who stay engaged—attending networking events, building referral sources, and maintaining consistent visibility—the income grows predictably over time.
That is the real financial magic of this profession.
Bottom Line
A six-figure income is not a fantasy—it’s a mathematical outcome of:
-
Consistent marketing habits
-
Building referral relationships
-
Understanding your commission structure
-
Allowing residual income to accumulate
As long as you stay active, committed, and visible in your market, the numbers start working in your favor.
This business rewards persistence.
And over time, persistence becomes prosperity.